Employer moving 401(k) from [Schwab to Voya]

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johnpau
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Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

Hi,

Working from 10 years for this employer.
Maxing out 401(K) pre-tax contributions all the 10 years.

We had 401(k) with Charles Schwab. Following Vanguard fund is where I contributed all the 10 years.
"Vanguard Target Retirement 2045 Index Fund"

https://investor.vanguard.com/investmen ... file/vtivx

As per the link above this index fund has 0.08% expense ratio

Now our employer is moving 401(k) to a new firm (VOYA). And Voya doesn't offer Vanguard target date funds. So they are giving the following
fund
"MorningStar Lifetime Growth 2045 Index Fund"

https://www.morningstar.com/funds/xnas/ltmkx/quote

As per the above link this Morning star index fund has 0.58% expense ratio. Which is almost 7 times more compared to Vanguard target fund.

I'm not good at stocks....etc . I like the Index fund simplicity.

Questions:

1) What do you think when comparing between VTIVX( Vanguard) Vs LTMKX (morning star)

2) When an employer moves to a different 401(k) provider, in our case from charles schwab to Voya. And if I don't like the funds available at the new provider(Voya). Can I leave the current 401(k) balance at Charles Schwab and start with Voya from Scratch ?

3) I'm sure lot of you might have been through this process and what did you do if you don't like the available funds at the new provider ?

Any other suggestions are welcome.

Thanks for your time.
Last edited by johnpau on Wed Jun 22, 2022 4:53 pm, edited 1 time in total.
exodusNH
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Re: Employer moving 401(k) from Vanguard to MorningStar

Post by exodusNH »

johnpau wrote: Wed Jun 22, 2022 3:52 pm Hi,

Working from 10 years for this employer.
Maxing out 401(K) pre-tax contributions all the 10 years.

We had 401(k) with Charles Schwab. Following Vanguard fund is where I contributed all the 10 years.
"Vanguard Target Retirement 2045 Index Fund"

https://investor.vanguard.com/investmen ... file/vtivx

As per the link above this index fund has 0.08% expense ratio

Now our employer is moving 401(k) to a new firm (VOYA). And Voya doesn't offer Vanguard target date funds. So they are giving the following
fund
"MorningStar Lifetime Growth 2045 Index Fund"

https://www.morningstar.com/funds/xnas/ltmkx/quote

As per the above link this Morning star index fund has 0.58% expense ratio. Which is almost 7 times more compared to Vanguard target fund.

I'm not good at stocks....etc just like the Index fund simplicity.

Questions:

1) What do you think when comparing between VTIVX( Vanguard) Vs LTMKX (morning star)

2) When an employer moves to a different 401(k) provider, in our case from charles schwab to Voya. And if I don't like the funds available at the new provider(Voya). Can I leave the current 401(k) balance at Charles Schwab and start with Voya from Scratch ?

3) I'm sure lot of you might have been through this process and what did you do if you don't like the available funds at the new provider ?

Any other suggestions are welcome.

Thanks for your time.
Until you leave the company, the funds are essentially locked to the whims of your employer. There is nothing you can do but complain and see if they'll change up the plan.

Chances are this plan is costing the company a lot less money than leaving it at Schwab.

Do you have other index funds available where you can build your own "target date" fund. Sometimes, the TDF funds will be proprietary but the plan will offer low-cost funds, too. E.g., my plan is held by The Capital Group. Our target date funds are American Funds, but we have the Fidelity 500, midcap, and small cap index funds and the international index.
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Re: Employer moving 401(k) from Vanguard to MorningStar

Post by retired@50 »

johnpau wrote: Wed Jun 22, 2022 3:52 pm ...As per the above link this Morning star index fund has 0.58% expense ratio. Which is almost 7 times more compared to Vanguard target fund.
...
3) I'm sure lot of you might have been through this process and what did you do if you don't like the available funds at the new provider ?
Things you could do... In no particular order.

1. Get a new job, somewhere that has a good 401k plan.

2. Talk it over with your co-workers and consider raising the issue with management. Upping your expense ratio by that much will cost you real money. Maybe some mathematical examples would help illustrate the point. This is essentially a pay cut, happening now, but will only be felt in your retirement years, when withdrawals are happening from a smaller nest egg.

There are some wiki pages that might help.

The Expense Ratio page: https://www.bogleheads.org/wiki/Expense_ratios

How to Campaign for a better 401k plan: https://www.bogleheads.org/wiki/How_to_ ... 01(k)_plan

Regards,
This is one person's opinion. Nothing more.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by LadyGeek »

johnpau - I modified the thread title - it was confusing. Your employer is moving a 401(k) administered by Schwab to one with Voya.

From:
- Schwab, the account is invested in the "Vanguard Target Retirement 2045 Index Fund"

To:
- Voya, with the only choice as "MorningStar Lifetime Growth 2045 Index Fund"
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Re: Employer moving 401(k) from Vanguard to MorningStar

Post by johnpau »

exodusNH wrote: Wed Jun 22, 2022 3:57 pm
Do you have other index funds available where you can build your own "target date" fund. Sometimes, the TDF funds will be proprietary but the plan will offer low-cost funds, too. E.g., my plan is held by The Capital Group. Our target date funds are American Funds, but we have the Fidelity 500, midcap, and small cap index funds and the international index.
Following are funds available from the new provider:

Morningstar Lifetime Growth Income Index Fund
Morningstar Lifetime Growth 2015 Index Fund
Morningstar Lifetime Growth 2020 Index Fund
Morningstar Lifetime Growth 2025 Index Fund
Morningstar Lifetime Growth 2030 Index Fund
Morningstar Lifetime Growth 2035 Index Fund
Morningstar Lifetime Growth 2040
Morningstar Lifetime Growth 2045
Morningstar Lifetime Growth 2050
Morningstar Lifetime Growth 2055
Morningstar Lifetime Growth 2060
Morningstar Lifetime Growth 2065
BlackRock US Equity Fund
BlackRock International Equity Fund
BlackRock Fixed Income Fund
Large Cap US Equity Fund
Large Cap US Equity Fund
Sm/Mid-Cap US Equity Fund
Metropolitan West Total
International Equity Fund
Metropolitan West Total Retirement
Voya Stable Value Fund
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Re: Employer moving 401(k) from Vanguard to MorningStar

Post by retired@50 »

johnpau wrote: Wed Jun 22, 2022 5:03 pm Following are funds available from the new provider:
You should probably add ticker symbols and expense ratios to the list of funds, which will help forum members provide better advice.

If I had to guess... These 3 look promising.
BlackRock US Equity Fund
BlackRock International Equity Fund
BlackRock Fixed Income Fund

Regards,
This is one person's opinion. Nothing more.
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Re: Employer moving 401(k) from Vanguard to MorningStar

Post by exodusNH »

johnpau wrote: Wed Jun 22, 2022 5:03 pm
exodusNH wrote: Wed Jun 22, 2022 3:57 pm
Do you have other index funds available where you can build your own "target date" fund. Sometimes, the TDF funds will be proprietary but the plan will offer low-cost funds, too. E.g., my plan is held by The Capital Group. Our target date funds are American Funds, but we have the Fidelity 500, midcap, and small cap index funds and the international index.
Following are funds available from the new provider:

Morningstar Lifetime Growth Income Index Fund
Morningstar Lifetime Growth 2015 Index Fund
Morningstar Lifetime Growth 2020 Index Fund
Morningstar Lifetime Growth 2025 Index Fund
Morningstar Lifetime Growth 2030 Index Fund
Morningstar Lifetime Growth 2035 Index Fund
Morningstar Lifetime Growth 2040
Morningstar Lifetime Growth 2045
Morningstar Lifetime Growth 2050
Morningstar Lifetime Growth 2055
Morningstar Lifetime Growth 2060
Morningstar Lifetime Growth 2065
BlackRock US Equity Fund
BlackRock International Equity Fund
BlackRock Fixed Income Fund
Large Cap US Equity Fund
Large Cap US Equity Fund
Sm/Mid-Cap US Equity Fund
Metropolitan West Total
International Equity Fund
Metropolitan West Total Retirement
Voya Stable Value Fund
I agree with retired@50. If you post the expense ratios and tickets for the rest of the funds, you might be able to roll your own target date fund pretty easily. Taking your current Vanguard fund, a similar allocation would be

50% BlackRock US Equity Fund
35% BlackRock International Equity Fund
15% BlackRock Fixed Income Fund

Then you'd contribute new funds are that rate, and rebalance one a quarter or year. Precision isn't necessary.

If they don't have tickers, then they're probably CITs, which are just as good as mutual funds.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

Our document from employer's new 401k provider ( Voya) says the following fund names:


Morningstar Lifetime Growth 2040 Index Fund
Morningstar Lifetime Growth 2045 Index Fund
Morningstar Lifetime Growth 2050 Index Fund
Morningstar Lifetime Growth 2055 Index Fund


But when I google the above fund names, I don't get any results with the ticker symbol or anything. Am I missing something ?
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by LadyGeek »

I'm also having some difficulties. I found one hit for MORNINGSTAR Lifetime Growth 2040 Index CLASS N-1, but it's a different share class.

When you can't find the fund info online (sometimes, the funds are privately owned), the best approach is to download the fund's fact sheet which has to be provided with the fund info. There are several things to look for.

1. The index that the fund tracks
2. Expense ratio
3. For a target date fund - the asset allocation (stocks / bonds ratio)

The tracking (benchmark) index should be publicly found. You can find similar funds and make a decision that way. IOW, it acts like this one... so the performance should be the same.

You don't have much control on the expense ratio, but it's helpful for comparison.

For a target date fund, just pick the one that's closest to your desired asset allocation. Done.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by RetiredAL »

johnpau wrote: Thu Jun 23, 2022 6:28 pm

But when I google the above fund names, I don't get any results with the ticker symbol or anything. Am I missing something ?
These will be CIT's -- no tickers. CIT's are fine.

You need to look in the plan documentation to see what index(s) each CIT Fund tracks and it's ER. Armed with the index(s), you can look up the company's retail funds and pick a near match, as CIT's usually have a kissing cousin retail fund from the same company,

Also note, within CIT's, income accumulates, unlike the normal retail funds where income is distributed. Distributing is there only to satisfy the taxman, and is meaningless within a 401K. CIT's tend to have cheaper ER since all that bookkeeping cost is eliminated.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by LadyGeek »

Acronym decoder:

CIT - Collective Investment Trust
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by Tattarrattat »

We had a very similar situation, also with a switch to Voya. In the end we picked an SP500 fund that had an expense ratio of 0.24% (not great but the best option) and just put 100% in that and chose to balance the international and bond holdings in other accounts that had much lower ERs.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by atlguy »

I suppose you could move all the current funds to an IRA, The you could do that every year from the Voya 401-k. I assume there is no vesting.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by sport »

atlguy wrote: Thu Jun 23, 2022 7:43 pm I suppose you could move all the current funds to an IRA, The you could do that every year from the Voya 401-k. I assume there is no vesting.
You can do this only if the plan documents permit "in-service" withdrawals. Some (most?) plans do not.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by beyou »

Just to set the record straight, these fund choices are made by your employer, not by Voya. My employer uses Voya and we have a totally different set of funds. Voya as 401k administrator should be able to offer many choices to your employer. Some funds give fees back to Voya, hence Voya charges your employer less admin fees.

Complain to your employer if not happy.

List the expense ratios of the fund choices if you want more guidance.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

Thanks all for the replies.
I was able to get the actual fund name and the expense ratios.
See below list:


Morningstar Lifetime Gr Inc Index N-1 0.08%
Morningstar Lifetime Gr 2040 Index N-1 0.08%
Morningstar Lifetime Gr 2045 Index N-1 0.08%
Morningstar Lifetime Gr 2050 Index N-1 0.08%
Hearst Stable Value Fund 0.32%
BlackRock US Debt Index Fund 0.04%
BlackRock Equity Index Fund M 0.015%
Large Cap US Equity – Active 0.61%
US Small/Mid Cap – Active 0.81%
BlackRock MSCI EAFE Equity Index Fund M 0.05%
International Equity – Active 0.80%
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by retired@50 »

johnpau wrote: Fri Jun 24, 2022 1:26 pm I was able to get the actual fund name and the expense ratios.
As expected, the 3 Blackrock funds are low expense ratio index funds, so I'd use those if I were in this plan.

Regards,
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by exodusNH »

johnpau wrote: Fri Jun 24, 2022 1:26 pm Thanks all for the replies.
I was able to get the actual fund name and the expense ratios.
See below list:


Morningstar Lifetime Gr Inc Index N-1 0.08%
Morningstar Lifetime Gr 2040 Index N-1 0.08%
Morningstar Lifetime Gr 2045 Index N-1 0.08%
Morningstar Lifetime Gr 2050 Index N-1 0.08%
Hearst Stable Value Fund 0.32%
BlackRock US Debt Index Fund 0.04%
BlackRock Equity Index Fund M 0.015%
Large Cap US Equity – Active 0.61%
US Small/Mid Cap – Active 0.81%
BlackRock MSCI EAFE Equity Index Fund M 0.05%
International Equity – Active 0.80%
Without digging into the details of the target date funds, I'd be wary of funds with "growth" in the name. The pricing is good, but without knowing if they've got a true growth tilt, I'd avoid them.

I'd, too, stick with the three Blackrock funds. They're excellent and inexpensive.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

Please confirm if you are referring to the following blackrock funds:

BlackRock US Debt Index Fund 0.04%
BlackRock Equity Index Fund M 0.015%
BlackRock MSCI EAFE Equity Index Fund M 0.05%
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by exodusNH »

johnpau wrote: Fri Jun 24, 2022 2:00 pm Please confirm if you are referring to the following blackrock funds:

BlackRock US Debt Index Fund 0.04% U.S. Bonds 92.5%
BlackRock Equity Index Fund M 0.015% U.S. Stocks 98.6%
BlackRock MSCI EAFE Equity Index Fund M 0.05% Non U.S. Stocks 98.5%
Yes.

Those are your US, ex-US, and bond fund choices.

Hold in the proportions you desire.

E.g. if you wanted 20% bonds, you'd then apportion the other 80% to those two stock funds. People argue endlessly about international, from 0% to 40%.

Bonds: 20%
US: 48%-80%
ex-US: 0%-32%

Or no bonds:

Bonds: 0%
US: 60%-100%
ex-US: 0%-40%
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

Thanks for confirming.

With our current 401k plan provider ( charles schwab) I had 100% allocated to "Vanguard Target Retirement 2045 Fund VTIVX"
Being a rookie in this area, I never had to rebalance or change any proportions in the last 10 years.

With the new transition to Voya 401K plan provider, they said based on our current Vanguard 2045 TDF it would automatically map to the following fund:

Morningstar Lifetime Gr 2045 Index N-1 0.08% (expense ratio).

After the transition is done, instead of going with above fund I can pick the following 3 blackrock funds as suggested.

BlackRock US Debt Index Fund 0.04%
BlackRock Equity Index Fund M 0.015%
BlackRock MSCI EAFE Equity Index Fund M 0.05%


But I need to worry about rebalance (which I haven't done before)
every year ?
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by exodusNH »

johnpau wrote: Fri Jun 24, 2022 2:19 pm Thanks for confirming.

With our current 401k plan provider ( charles schwab) I had 100% allocated to "Vanguard Target Retirement 2045 Fund VTIVX"
Being a rookie in this area, I never had to rebalance or change any proportions in the last 10 years.

With the new transition to Voya 401K plan provider, they said based on our current Vanguard 2045 TDF it would automatically map to the following fund:

Morningstar Lifetime Gr 2045 Index N-1 0.08% (expense ratio).

After the transition is done, instead of going with above fund I can pick the following 3 blackrock funds as suggested.

BlackRock US Debt Index Fund 0.04%
BlackRock Equity Index Fund M 0.015%
BlackRock MSCI EAFE Equity Index Fund M 0.05%


But I need to worry about rebalance (which I haven't done before)
every year ?
What's your balance?

The Vanguard fund is probably something like

15% bonds
51% US stocks
34% international

For new money, have it go in at those percentages.

Once per year, log in and rebalance.

You might even be able to schedule the rebalancing. Some 401k platforms offer that.

It doesn't matter too much if it drifts over the course of the year. Consistently saving is the biggest driver of success.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by retired@50 »

johnpau wrote: Fri Jun 24, 2022 2:19 pm But I need to worry about rebalance (which I haven't done before)
every year ?
Probably not. Maybe every 2 or 3 years.
If you continue to contribute to all 3 funds with each paycheck, they may not deviate much from your desired percentages. If they do, you can correct it by selling what you have too much of, and using the proceeds to buy what you have too little of.

It's covered here: https://www.bogleheads.org/wiki/Rebalancing

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Re: Employer moving 401(k) from [Schwab to Voya]

Post by epictetus »

if the target date funds' expense ratio is really .08 then that is a fine option as well as the other suggestions.
Focus on what you can control
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

exodusNH wrote: Fri Jun 24, 2022 2:25 pm
The Vanguard fund is probably something like

15% bonds
51% US stocks
34% international

For new money, have it go in at those percentages.

Quick question on the above highlighted comment from you:

When you say "New Money" are you referring to the new contributions I will be making going forward after the Voya 401K switch is done ?

How about the current old balance which I already have and which gets transferred automatically from Charles Schwab to Voya ?
Should I leave the 100% balance in the mapping fund "Morningstar Lifetime Gr 2045 Index N-1 0.08%" ?
Or I will be exchanging them and distribute the 100% balance into the following 3 blackrock index funds based on the % allocation you suggested.


50% BlackRock US Equity Fund
35% BlackRock International Equity Fund
15% BlackRock Fixed Income Fund
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by exodusNH »

johnpau wrote: Fri Jun 24, 2022 3:19 pm
exodusNH wrote: Fri Jun 24, 2022 2:25 pm
The Vanguard fund is probably something like

15% bonds
51% US stocks
34% international

For new money, have it go in at those percentages.

Quick question on the above highlighted comment from you:

When you say "New Money" are you referring to the new contributions I will be making going forward after the Voya 401K switch is done ?

How about the current old balance which I already have and which gets transferred automatically from Charles Schwab to Voya ?
Should I leave the 100% balance in the mapping fund "Morningstar Lifetime Gr 2045 Index N-1 0.08%" ?
Or I will be exchanging them and distribute the 100% balance into the following 3 blackrock index funds based on the % allocation you suggested.


50% BlackRock US Equity Fund
35% BlackRock International Equity Fund
15% BlackRock Fixed Income Fund
My initial thought is that you immediately get out of the TDF. In searching for info, I have found references to "moderate" and "growth" versions. I can't find real data sheets and so can't tell if that means the growth ones have a growth tilt (e.g. Facebook, Google, Amazon) or if they're called growth simply because they have a small bond allocation. (The term can be used both ways.)

If you could find and post the prospectus, that would help. Absent that, I'd get out of the TDF and have new contributions going in at the same ratio.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

Here are the links for the fund fact sheet:

Morningstar Lifetime Gr 2045 Index N-1


https://postimg.cc/mzRRQGDj



https://i.postimg.cc/DZ4Z3v39/Mr2045.jpg


Image
Last edited by johnpau on Fri Jun 24, 2022 4:20 pm, edited 2 times in total.
exodusNH
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by exodusNH »

johnpau wrote: Fri Jun 24, 2022 3:49 pm Here are the links for the fund fact sheet:

Morningstar Lifetime Gr 2045 Index N-1


https://postimg.cc/mzRRQGDj



https://i.postimg.cc/DZ4Z3v39/Mr2045.jpg
The style box says it's a large blend, which is probably fine. Note, though, it's only 3% bonds. Perhaps that's what "growth" refers to -- a lower than typical bond allocation.

I think this fund family is fine, but you'll need to decide if you're comfortable with that bond allocation. If you look at the other data sheets, you should be able to find one that matches Vanguard's, roughly. Just watch out for the glide path, as the Morningstar fund pretty rapidly ramps up the bonds. Vanguard is a much gentler glide.

What you might consider if you're uncomfortable with that few bonds is to do 90% into the target fund and 10% into the Blackrock bond fund. That will get you close to the Vanguard 2045 15% bonds.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

exodusNH wrote: Fri Jun 24, 2022 3:57 pm
Just watch out for the glide path, as the Morningstar fund pretty rapidly ramps up the bonds. Vanguard is a much gentler glide.
Thanks for the info
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

exodusNH wrote: Fri Jun 24, 2022 3:57 pm
What you might consider if you're uncomfortable with that few bonds is to do 90% into the target fund and 10% into the Blackrock bond fund. That will get you close to the Vanguard 2045 15% bonds.

Thanks for the suggestion.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

Morningstar Lifetime Growth Income Index Fund fact sheet


Image
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

Morningstar Lifetime Gr 2020 Index N-1 fund fact sheet


Image
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

Morningstar Lifetime Gr 2025 Index N-1 fund fact sheet



Image
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

Even the following Morningstar TDF 2020/2025 have the following bond % allocation.

Year 2020 ( bond 34%)
Year 2025 (bond 27%)

So as you said the bond allocation is low for people who are already in retirement now or 3 years away ?
Or may be the GROWTH fund has less allocated % to bonds
Last edited by johnpau on Fri Jun 24, 2022 4:51 pm, edited 2 times in total.
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Re: Employer moving 401(k) from [Schwab to Voya]

Post by exodusNH »

johnpau wrote: Fri Jun 24, 2022 4:26 pm Even the following Morningstar TDF 2020/2025 have the following bond % allocation.

Year 2020 ( bond 34%)
Year 2025 (bond 27%)

So as you said the bond allocation is low for people who are already in retirement now or 3 years away ?
Or may be the GROWTH has less allocated % to bonds
I believe that's what they mean by "growth" instead of a tilt to growth stocks. That makes them a better product, if you can tolerate the bond allocation and glide path. But that easy enough to compensate for by going 10% into the Blackrock bond fund.

You're young, though. Chances are there's no harm going with the simplicity of just the TDF. Just keep it in mind and revisit it in a couple of years.

Again, investing success relies saving as much as you can and not making big mistakes. Precision is a second or third order effect (within reason. E.g. letting bonds drift down to 1% is probably a bad idea if you're aiming for 15%, but 13% or 17% likely doesn't make a huge difference.)
123
Posts: 8685
Joined: Fri Oct 12, 2012 3:55 pm

Re: Employer moving 401(k) from [Schwab to Voya]

Post by 123 »

Read all the disclosure documents concerning your account with Voya. There can be 401k plans with Voya that charge an account administrative fee directly to the plan participants. Sad to hear that you're 401k is leaving Schwab.
The closest helping hand is at the end of your own arm.
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johnpau
Posts: 396
Joined: Sat Dec 30, 2017 5:24 pm

Re: Employer moving 401(k) from [Schwab to Voya]

Post by johnpau »

Morningstar Lifetime Gr 2045 Index N-1 fund - Rating from morningstar

The name of the fund has mornignstar keyword and the rating from Overall morning star is only 2 stars **

See below screenshot with red highlight.



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Rudedog
Posts: 445
Joined: Wed Aug 01, 2018 3:15 pm

Re: Employer moving 401(k) from [Schwab to Voya]

Post by Rudedog »

My employer just blindly accepted whatever funds the "investment advisor" recommended. In my case it was Franklin and American funds with questionable performance and high expense ratios. Amazing how intelligent people just glaze over and don't ask the right questions. In any case, their 401k plan document allowed in-service rollovers if the employee was 59 years old or older. So, I rolled my account balance (after selling the mutual funds that were in my account) to a Vanguard Rollover IRA. Glad I did it, very easy to manage, expense ratios are low. Then, I continued to annually roll my balance out of the company 401k to my Vanguard Rollover IRA. Check your plan document does it permit in-service rollovers, if not, you can ask the trustees or sponsor to amend the plan. Good luck, its too bad decisions made by "The Man" can have an adverse effect on your retirement money.
GuyInFL
Posts: 598
Joined: Thu Aug 04, 2016 7:17 pm

Re: Employer moving 401(k) from [Schwab to Voya]

Post by GuyInFL »

When my mega Corp switched to Voya, we had the option of rolling existing 401K to an IRA. Normally the plan did not allow for inservice rollovers.
We had excellent index CITs available with Vita and I've been happy.
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